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Work ON and not IN your business… Thanks heaps for the advice.

sahil merchant icon1 Work ON and not IN your business... Thanks heaps for the advice.It is very easy to dole out advice, especially when you have never had to walk the walk. Everyone is an expert because they have read the latest entrepreneurial “it” book or have “seen” things turn out a certain way on countless occasions. Yeah, but have they “felt” them?

I’ve heard it a hundred times. Entrepreneurs need to work on their business as opposed to in their business. Gee thanks. Until you told me that, I genuinely believed that most entrepreneurs start a business because they are desperate to get stuck in minutiae.

Sarcasm aside, why is it so damn hard to heed an apparent truism? Why the hell have I been sitting here all weekend at a trade exhibition manning a damn counter while my three kids spend another weekend without that random bloke who comes in and out of their lives from time to time? Did I acquire my law degree, commerce degree, MBA and years of top management consulting experience so that I could subtract $15 from $20 to allow me to hand out $5 in change?

Let me quickly clarify that this is not a whinge. Before you all start to slag me off, I openly admit that all the decisions I have made in my life have been my decisions. As my four year old son says, “I am the boss of me” – all the rewards are mine to reap and all frustrations mine to bear.

The point of this post is not to emphasise how hard most entrepreneurs have to work for success, but to share the irony that I perceive and the occasional impatience I feel when I get reminded to do what I know I must – take the helicopter view.

There is no denying that it is good for the boss to get his or her hands dirty every now and then. Great for team morale, and it also keeps you in touch with what is going on down in the trenches. Doing this from time to time is not inconsistent with maintaining a strategic overview. This is not my issue.

However, getting stuck in the day-to-day happens to most of us entrepreneurs, and the obvious question is ‘why?’ – especially when we know it is not in the best interests of our company. Are we just inherently forgetful, or is something else in play?

A constant balancing act

I would love nothing more than to spend all my time driving the growth of my company. There are so many exciting opportunities for us to conquer, and doing this would lead to great prosperity. The problem is: who is going to keep the engine humming if I spend all my time on growth?

‘Invest in resources’ say the experts. Build a great team and la di da di da… you know the spiel. But hiring more people means that my short-term cashflow goes into the toilet. And, in my case, unlocking new funds to enable growth depends on hitting real world performance targets.

I am faced with the perennial entrepreneurial conflict – short versus long term. Nothing new in that. However, what many of the “experts” don’t realise is that we all have an in-built survival mechanism. The long term is future gain, the short term avoidance of pain. Where do you think our bias lies?

So here I am working another weekend, saving the company weekend hourly rates, albeit for a one-off exhibition. Our July numbers will benefit from my efforts. And no one can represent the company to new customers better than I can. But is this the best use of my time? No. Is this me working on the business or in it? In it. And is the company better or worse off as a result? Better. Why? Because working in the business today allows me to get closer to being able to work on the business tomorrow.

Easy tiger… advice is cheap

Some may call this a life cycle thing; when you are really young, this is what you do, and as you mature, you manage to get some head space. This may be true for some businesses (I am highly conscious that all enterprises are different and that financing structures play a major part), but for my business, this becomes an issue whenever a funding milestone beckons. Just as I really need to ramp up on the vision and direction, the temptation is to bury myself and jump on in to ensure we meet those targets.

Others call it sweat equity. I can’t speak for funders in general, but I sort of think that they expect me to take the helicopter view while at the same time be down in the trenches… and this is what I do.

The problem with this approach is that it doesn’t leave much time for family, friends or health. Again, not a whinge, but the real price I pay. Family, friends and health don’t deliver short-term ROI. The folly of ignoring this in the long term is self-evident, but hey – we can push him a little harder. He’s a tough guy, right?

So all you people who feel free to dole out advice about working on my business, I know you are right. But it isn’t always easy. There are lots of real life complications involved with running a business. If you haven’t actually done it, and felt the pressure of being squeezed on short term targets, please understand that I am trying to balance a delicate business ecosystem.

And for all of you who expect me to be on top, underneath and all around my business at the same time… I am ok with this. But again, it is not always easy. And I know that you know that it is not easy (are you following me?), and that you will say that I haven’t been funded to achieve something pedestrian. All very true, but please think twice before metering out your advice.

There are real sacrifices involved in working on and in the business at the same time, and until you have missed another kid’s birthday party to cover for a staff member, and left in the middle of Christmas lunch to meet the police and check why your office alarm is going off… Well, let’s just say that I will be more receptive to your sound but at the same time contradictory advice of helicopter view, hands dirty, strategic vision and short-term cash conservation when I’ve seen you do the same.

Sahil Merchant is founder of mag nation. Follow him on twitter: @sahilmerchant. His launch post can be found here.

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  • http://www.internetretailing.com.au Mark Freidin

    Hi Sahil

    Here I sit at 9:40 pm nursing my baby upstart, putting in the “sweat equity”, after preparing dinner and lunchboxes for three kids, homework, bathtime etc after a long day out in workville.

    This is my second venture (sold the first one seven years ago), and it was enlightening to check my email and see this article, because you capture the true dilemma of the small business upstart.

    I agree that everyone has such advice to give, yet most of those well intended friends and colleagues giving advise are people that often have professional careers and have always been employees (some well paid too), and will never understand what its like to build and steer your own ship.

    Some of my friends and colleagues say that a new upstart is easy for me as I’ve done it all before. This is interesting as the comment frequently comes from people that are well respected in their industries yet they are gripped with fear at the thought of venturing out on their own. What they don’t realise is that I too entered the entrepreneurial world with some fear and trepidation. There’s a huge opportunity cost in failure.

    Given the chance I would be very interested to identify the personality traits that separate the risk takers versus those in their comfort zones yet yearning to be masters of their own destinies.

    [Reply]

    Jeanette Jifkins Reply:

    Hi Mark,

    There is actually a personality profile test out there that allows you to identify risk takers over the more conservative types, and its aimed specifically at entrepreneurs. http://www.wdprofiletest.com/ I work with a bunch of people who know their profiles and it does tend to make a difference. Being a Lord profile I’m detail orientated and risk averse. Thankfully my husband is a Creator profile who is constantly generating new ideas and opportunities and not at all risk averse. Knowing our profiles allows us to identify the balance and work more to our strengths. It also makes it much easier to identify what needs to be delegated out.

    Jeanette Jifkins

    [Reply]

  • http://www.davidcaruso.com.au David Caruso

    After 17 years of running a small business from start up to management control – to almost going broke – to running the business again – back to management control (just showing you the dirt under the finger nails):-

    All I would like to advise is this : Know where your end goal is! If you are happy hands on running a SME Business (making above normal wages and being your own boss) good for you – you will always have a successful, efficient SME Business!

    If you aspire for more – you perfectly summed up the ‘sacrifice’ needed at the initial stages (and please trust me when I say – there will be many more bigger hurdles (sacrfices) in your journey!)

    Or you might aspire to get the business to a certain size and look to sell to a major player in your industry.

    Whatever your aspirations – have the ‘end goal’ in mind!

    David Caruso

    PS – enjoyed your post – well done

    [Reply]

  • http://www.1treehill.com.au Daryl Brooke

    Hi Sahil,

    I guess most business owners have been there, maybe all. There is merit in getting advise from people who have experienced what you are going through. They do exist. Keep in mind that if it’s hard for you it will be hard for your competition.

    Daryl Brooke

    [Reply]

  • http://www.thepra.com.au Sam White

    Sahil,

    You’ve really nailed it in this post. Looking at your business from 10,000ft+ is much harder than it sounds.

    I agree with David’s comment that knowing what your ‘end goal’ or at least ‘major goal’ is important.

    Taking yourself physically out of the office (if you have one) is also a good way to work on the strategic goal-driven thinking and projects. I take one day a week from home to work on strategic projects and goals and, while it was hard initially to stop myself from going to work on that day, it has made a big difference. Having a manager you can rely on 100% is pretty important though if you are to do this.

    Distancing yourself from the day to day and having regular uninterrupted time to reflect on what you want to do with you business is a good way to keep thinking strategically.

    I guess that’s why we get so many good ideas on the plane huh?

    Sam

    [Reply]

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